ALSMA 2015 Benchmarking Research Conducted by Lema Abreu - PowerPoint PPT Presentation

ALSMA 2015 Benchmarking Research Conducted by Lema Abreu Independent Consulting Lda. ALSMA Annual Conference November 4-6 Kuala Lumpur - Malaysia

Please indicate the year on year % variance in number of pages / circulation for the following Directories: Print Business White Print Residential White Print Yellow Pages Circulation Pages L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What was the % year on year revenue performance for Print products and services in the following periods? Company 2014-2013 2013-2012 2012-2011 A 101% 109% 102% B 98% 96% 96% C 98% 79% 95% D 112% 112% 115% While still E 85% 83% 104% F declining, print 86% 83% 87% G 99% 97% 95% performance H 93% 92% 94% improved in 7 I 75% 74% 63% of 9 markets Average 94% 92% 95% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What was the % year on year variance in revenue performance for Digital products and services in the following periods? Company 2014-2013 2013-2012 2012-2011 A N/A N/A N/A B 111% 115% 108% C 54% 138% 111% D N/A N/A N/A On average, the E 83% 132% 205% F growth rate for 112% 116% 121% G 101% 103% 105% Digital Products H 152% 112% 110% sales has I 114% 174% 100% slowed down Average 104% 127% 123% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

Please Indicate what % of total sales was generated by Digital products and services in the following periods: Company 2014 2013 2012 A N/A N/A N/A B 18% 16% 14% C 27% 34% 21% On average, the D N/A N/A N/A weight of E 1% 8% 5% F Digital revenues 42% 43% 38% G 10% 9% 6% remains stable H 81% 73% 65% amid declining I 6% 4% 2% print revenues Average 26% 27% 22% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

Do you Sell Print and Digital programs Bundled as well as a-la-carte? Bundled Company Separate Both Only A B Publishers focus C primarily on D E bundled sales F for both print G and Digital H offers I L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

Extent of product offer continues to add complexity to the sales process Business Residential Web Company Yellow B to B Specialty EYP Mobile Google Facebook Ad Net White White Sites A B C D E F G H I L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

Does your Company provide Digital Performance information PROACTIVELY to clients? Company Yes No A B 2 out of 9 C D Publishers E proactively F provide Digital G performance H data I L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

European and US markets Digital performance, particularly revenue retention was in line with total revenue performance N E W % N E T G R O W T H R E T A I N E D % / € L O S S % / € / € % G R O U P O F E U R O P E A N TOTA L # 6 4 % # 3 6 % # 1 5 % # 7 9 % P E R F O R M A N C E C O M P A N I E S € 7 3 % € 2 7 % € 9 % € 8 2 % D I G I TA L # 6 7 % # 3 3 % # 1 3 2 % # 1 9 9 % P E R F O R M A N C E € 7 1 % € 2 9 % € 9 0 % € 1 6 1 % L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What is the % year on year variance in ARPA growth for the following periods? Company 14-13 13-12 12-11 A 100% 104% 106% On average, B 97% 96% 96% ARPA grew 8% C 108% 104% 108% in the past year D N/A N/A N/A increasing E 120% 98% 119% F dependency on 98% 98% 102% G 97% 89% 84% a smaller H 140% 105% 105% number of I 105% 94% 82% advertisers Average 108% 99% 100% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What is the % year on year variance in Digital ARPA growth for the following periods? Company 14-13 13-12 12-11 A N/A N/A N/A B N/A 106% 103% C 110% 123% 98% D N/A N/A N/A On average, E 85% 145% 117% F Digital ARPA has 113% 112% 132% G 96% 112% 185% grown in line H 150% 110% 105% with total ARPA I 103% 144% 111% growth Average 110% 107% 107% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

For your Company, what is the % year on year variance in the revenue retention rate? Company 14-13 13-12 12-11 A 102% 100% N/A On average, B 104% 94% 77% publishers have C 95% 96% 97% experienced D 80% 85% 85% stabilization on E 76% 100% N/A the rate of F 94% 92% 99% G 81% 83% 78% decline in H 77% 74% 69% revenue I 77% 76% 65% retention rates Average 87% 88% 81% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

For your Company, what is the year on year % variance in the number of unique clients? Company 14-13 13-12 12-11 A N/A N/A N/A B 91% 108% 92% On average, C 82% 95% 90% publishers have D N/A N/A N/A experienced a E 60% 87% 89% F double digit 95% 93% 97% G 87% 93% 97% decline in H 98% 96% 91% number of I 94% 76% 46% advertisers Average 87% 89% 84% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What percentage of your Company’s Client base was “New” advertisers for the following periods? Company 14-13 13-12 12-11 A 18% 15% 12% B 5% 5% 6% C 18% 13% 9% D 20% 20% 20% On average, E 5% 15% 16% F 17% of 8% 7% 10% G 24% 23% 31% revenues are H 35% 29% 26% generated from I 18% 22% 19% new advertisers Average 17% 17% 17% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What % of your sales force are Field Sales Reps? What is the % year on year variance in the % of Field Sales Reps for your Company for the following periods? Company % Field 14-13 13-12 12-11 A 100.00% 100.00% 100.00% 100.00% B 19% 98% 88% 78% C 100% 100% 100% 100% On average, the D 100% N/A N/A N/A dependency on E 45% 101% 86% 97% F field sales reps 100% 100% 100% 100% G 100% 100% 100% 100% for market H 100% 125% 133% 110% coverage has I 92% 120% 120% 120% increased Average 84% 105% 103% 101% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What is the % year on year variance in the number of advertisers per sales employee in your Company for the following periods? Company ‘14-’13 ‘13-’12 ‘12-’11 A 103% 102% 101% B 92% 94% 98% Increased offer C 82% 95% 90% complexity has D 110% N/A N/A an impact over E 84% 86% 81% the number of F 112% 91% 84% G 87% 93% 103% accounts H 100% 100% 100% handled by I 90% 90% 90% sales employee Average 96% 94% 93% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What % of the Employee population in your Company are sales employees? Company % A 43% On average, B 55% 45% of C 37% publisher D 50% employees are E 61% in sales F 49% G 36% functions. H 50% Range between I 25% 25% and 61% Average 45% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What is the % Year on Year variance in total traffic to your Electronic Yellow Pages Site for the following periods: Company 2014-2013 2013-2012 2012-2011 A 125% 118% 145% B 99% 108% 123% C 109% 139% 100% D 140% 180% N/A E 119% 151% 236% F EYP traffic 97% 241% 218% G 90% 101% 141% growth rate has H 136% 102% 132% slowed down in I 113% 119% 117% most markets Average 114% 140% 151% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

What % of total traffic to your Company’s Electronic Yellow Pages site was Organic or Direct to your site’s URL during the following periods? Company 2014 2013 2012 A 12% 15% 25.30% B 70% 66% 67% C 58% 71% 21% D N/A N/A N/A E 17% 21% 33% F On average, 27% 26% 24% G 14% 15% 12% Organic EYP H 14% 12% 11% traffic remains I 2% 1% 1% flat Average 27% 28% 24% L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

Summary findings • Declining overall revenues influenced by print performance • Shrinking customer base with higher ARPA • Reduced Digital revenue growth • Influenced by churn in line with print • Increased dependency on new advertisers • Difficulty in attracting non traditional advertiser segments • Increased complexity of product offer • Unclear value proposition to advertisers • Reduced productivity of sales force • Reduced growth in Digital traffic, dependency on search engines L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA

Business transformation is a continuous process • Need for aggressive, yet realistic plans • Clear focus on priority areas • Simplification of product offer, clear value proposition that is not price based • Sales Organization skills, structure, processes • Simplified processes that create value • Efficient allocation of resources • Effective business tools • Obsession with fulfilling customer promise • Flawless execution • Focus on priorities • Strong leadership, effective governance structure L e m a A b r e u I n d e p e n d e n t C o n s u l t a n t L DA